Electronic Commerce

Electronic commerce is one of the hottest growth areas on the Web. Estimates of e-commerce activity range from a conservative government estimate of $365 billion to an estimated $1 trillion annually by 2000 suggested by speakers at the Seybold/Wired Web Publisher Conference.

E-commerce is more than selling stuff online. It is using online resources and tools to do business better. Currently, most e-commerce involves business-to-business transactions, but retail activity is growing. Businesses are well-aware of the growing market provided by Internet users ; market research firms are producing surveys of Internet use at a dizzying rate. Companies might consider numbers similar to these when determining whether or not to go online with their product:

• Computer ownership - 75.6% of the households with annual incomes over $75,000
• Online access - 40.8% of the household with annual incomes over $75,000
• Internet access - 18.5% of U.S. adults over 18 (a conservative estimate)
• Online shopping -27% of Internet users made an online purchase in the past 12 months.

People shop on the Internet for a number of reasons:

• It can save money and time
• It offers variety, 24-hour access to big name retailers, and a global marketplace
• Credit card transactions are protected by the Fair Credit Billing Act
• Consumers can find bargains and bid on items they want
• Product information and other consumers' opinions are available

Is it really safe to shop on the Web? If you have a business, should you consider going online?

Shopping on the Internet can be as least as secure as other common practices. What things do you consider when giving your credit card number over the phone or faxing it? You probably feel comfortable with the process if you know who you are buying from and what their guarantees and return policies are. "Let the buyer beware" is no more or less applicable as it relates to shopping on the Internet.

Transactions with reliable commercial web sites are protected by standard security protocols. One standard, called Secure Sockets Layer (SSL) protects information as it travels over the Internet through a public key encryption, one of the strongest encryption methods around. In Netscape, you can tell that you're in the secure mode when an unbroken key appears on the bottom left corner of your browser window. Internet Explorer displays a padlock on the bottom right of the screen. Another way to tell that Web page asking for information is using SSL is when the URL begins with "https:" instead of "http:"

Other technologies should be used to protect your information once the merchant receives it. While it isn't important to understand all of the details of these technologies, reliable shopping sites should inform you about the security measures they have in place. Look for security information on the shopping sites you visit.

The safest way to shop online safely is to be informed. To learn more about e-commerce visit:

• MN's Access Minnesota Main Street
  http://www.extension.umn.edu/mainstreet/curriculum/ecomm/ec_def.html
• The Better Business Bureau's Protecting You in Cyberspace
  http://www.bbb.org/library/cyberprivacy.asp
• The Federal Trade Commission's Online publications
  http://www.ftc.gov/ftc/consumer.htm

The Master Internet Volunteer Program was developed by the University of Minnesota Extension Service and was adapted for use in North Dakota with permission. Copyright  © 2000  North Dakota State University. All rights reserved.

North Dakota State University Extension Service